MARKET WATCH: Crude, gas prices recover slightly in mixed markets

Energy commodities recovered slightly July 23 with front-month crude up 0.3% in New York, apparently pulled along by improvements in the equity market.

Benchmark crudes in both the US and UK “largely shrugged off the disappointing Hong Kong and Shanghai Banking Corp.’s flash purchasing managers index reading for China (47.7 for July, compared with a previous reading of 48.2),” said Marc Ground at Standard New York Securities Inc., the Standard Bank Group. Instead, traders apparently were reassured by Premier Li Keqiang’s claim China’s economic growth will not fall below 7% this year.

“This has many thinking that stimulus might be forthcoming to place this floor under economic activity,” Ground reported. However, he said, “We are not so confident that growth-at-all-costs stimulus will be forthcoming and rather feel that, as with last year’s ‘mini-stimulus,’ any fiscal policy will keep restructuring of the economy as the ultimate goal and consequently will not guarantee a dramatic improvement in economic growth.”

Meanwhile, the Dow Jones Industrial Index climbed 0.1% July 23 to top its former record high of 5 days earlier. Energy stocks bucked both equity markets and crude's modest rise, with the SIG Oil Exploration & Production Index down 0.4% and the Oil Service Index down 0.5%.

US inventories

The Energy Information Administration said July 24 commercial US crude inventories dropped 2.8 million bbl to 364.2 million bbl in the week ended July 19, matching exactly the Wall Street consensus. Gasoline stocks fell 1.4 million bbl to 222.7 million bbl, however, opposite analysts’ expectations of an increase of 1.7 million bbl. Finished gasoline inventories increased while blending components decreased. Distillate fuel declined 1.2 million bbl to 126.5 million bbl last week; a gain of 1.9 million bbl was anticipated.

Imports of crude into the US increased 327,000 b/d to 8 million b/d last week. In the 4 weeks through July 19, US crude imports averaged 7.7 million b/d, down 1.3 million b/d from the comparable period a year ago. Gasoline imports last week averaged 322,000 b/d while distillate fuel imports averaged 168,000 b/d.

The input of crude into US refineries declined 206,000 b/d to 160 million b/d last week with units operating at 92.3% of capacity. Gasoline production increased to 9.2 million b/d last week, but distillate fuel production decreased to 5 million b/d.

Energy prices

The new front-month September contract for benchmark US light, sweet crudes increased 29¢ to $107.23/bbl July 23 on the New York Mercantile Exchange. The October contract gained 28¢ to $105.79/bbl. On the US spot market, West Texas Intermediate at Cushing, Okla., was up 32¢ to match the $107.23 closing of the September crude futures contract.

Heating oil for August delivery recovered 0.29¢ but closed essentially unchanged at a rounded $3.07/gal on NYMEX. Reformulated stock for oxygenate blending for the same month inched up 0.4¢ but also finished virtually unchanged at a rounded $3.06/gal.

The August natural gas contract took back 6.6¢ to $3.74/MMbtu on NYMEX. On the US spot market, gas at Henry Hub, La., regained 1.2¢ to $3.71/MMbtu.

In London, the September IPE contract for North Sea Brent continued its rise, up 27¢ to $108.42/bbl. Gas oil for August was up $1.25 to $919.75/tonne.

The average price for the Organization of Petroleum Exporting Countries’ basket of 12 benchmark crudes lost 19¢ to $105.95/bbl.

Contact Sam Fletcher at samf@ogjonline.com.

Related Articles

PHMSA proposes pipeline accident notification regulations

07/02/2015 The US Pipeline and Hazardous Materials Safety Administration has proposed new federal oil and gas pipeline accident and notification regulations. ...

FourPoint Energy to acquire Anadarko basin assets from Chesapeake

07/02/2015 FourPoint Energy LLC, a privately owned Denver company, plans to acquire oil and gas assets from Chesapeake Energy Corp. subsidiaries Chesapeake Ex...

Puma Energy completes purchase of Murco’s UK refinery, terminals

07/02/2015 Singapore-based Puma Energy Group Pte. has completed its purchase of UK midstream and downstream assets from Murco Petroleum Ltd., a subsidiary of ...

BP to settle federal, state Deepwater Horizon claims for $18.7 billion

07/02/2015 BP Exploration & Production Inc. has agreed in principle to settle all federal and state claims arising from the 2010 Deepwater Horizon inciden...

MARKET WATCH: NYMEX oil prices plummet on crude inventory build, Iran deadline extension

07/02/2015 Oil prices plummeted more than $2/bbl July 1 to settle at a 2-month low on the New York market after a weekly government report showed the first ri...

API to issue recommended practice to address pipeline safety

07/01/2015 The American Petroleum Institute expects to issue a new recommended practice in another few weeks that addresses pipeline safety issues, but the tr...

Shell Midstream Partners takes interest in Poseidon oil pipeline

07/01/2015 Shell Midstream Partners LP has completed its acquisition of 36% equity interest in Poseidon Oil Pipeline Co. LLC from Equilon Enterprises LLC, a s...

MARKET WATCH: Oil prices decline as US crude inventories post first gain in 9 weeks

07/01/2015 Oil prices on July 1 surrendered much of their gains from the day before after the release of a government report showing the first rise in US crud...

FWS issues Shell letter of authorization on Chukchi Sea lease

07/01/2015 The US Fish & Wildlife Service issued Shell Gulf of Mexico Inc. a letter of authorization (LOA) related to the potential disturbance of polar b...
White Papers

2015 Global Engineering Information Management Solutions Competitive Strategy Innovation and Leadership Award

The Frost & Sullivan Best Practices Awards recognise companies in a variety of regional and global...
Sponsored by

Three Tips to Improve Safety in the Oil Field

Working oil fields will always be tough work with inherent risks. There’s no getting around that. Ther...
Sponsored by

Pipeline Integrity: Best Practices to Prevent, Detect, and Mitigate Commodity Releases

Commodity releases can have catastrophic consequences, so ensuring pipeline integrity is crucial for p...
Sponsored by

AVEVA’s Digital Asset Approach - Defining a new era of collaboration in capital projects and asset operations

There is constant, intensive change in the capital projects and asset life cycle management. New chall...
Sponsored by

Transforming the Oil and Gas Industry with EPPM

With budgets in the billions, timelines spanning years, and life cycles extending over decades, oil an...
Sponsored by

Asset Decommissioning in Oil & Gas: Transforming Business

Asset intensive organizations like Oil and Gas have their own industry specific challenges when it com...
Sponsored by

Squeezing the Green: How to Cut Petroleum Downstream Costs and Optimize Processing Efficiencies with Enterprise Project Portfolio Management Solutions

As the downstream petroleum industry grapples with change in every sector and at every level, includin...
Sponsored by

7 Steps to Improve Oil & Gas Asset Decommissioning

Global competition and volatile markets are creating a challenging business climate for project based ...
Sponsored by
Available Webcasts


OGJ's Midyear Forecast 2015

When Fri, Jul 10, 2015

This webcast is to be presented by OGJ Editor Bob Tippee and Senior Economic Editor Conglin Xu.  They will summarize the Midyear Forecast projections in key categories, note important changes from January’s forecasts, and examine reasons for the adjustments.

register:WEBCAST


Predictive Analytics in your digital oilfield - Optimize Production Yield and Reduce Operational Costs

When Tue, Jul 7, 2015

Putting predictive analytics to work in your oilfield can help you anticipate failures, plan and schedule work in advance, eliminate emergency work and catastrophic failures, and at the same time you can optimize working capital and improve resource utilization.  When you apply analytic capabilities to critical production assets it is possible to reduce non-productive time and increase your yield.

Learn how IBM's analytics capabilities can be applied to critical production assets with the goal of reducing non-productive time, increasing yield and reducing operations costs.

register:WEBCAST



On Demand

Cognitive Solutions for Upstream Oil and Gas

Fri, Jun 12, 2015

The oil & gas sector is under pressure on all sides. Reserves are limited and it’s becoming increasingly expensive to find and extract new resources. Margins are already being squeezed in an industry where one wrong decision can cost millions. Analyzing data used in energy exploration can save millions of dollars as we develop ways to predict where and how to extract the world’s massive energy reserves.

This session with IBM Subject Matter Experts will discuss how IBM Cognitive Solutions contribute to the oil and gas industry using predictive analytics and cognitive computing, as well as real time streaming for exploration and drilling.

register:WEBCAST


The Alternative Fuel Movement: Four Need-to-Know Excise Tax Complexities

Thu, Jun 4, 2015

Discussion on how to approach, and ultimately embrace, the alternative fuel market by pulling back the veil on excise tax complexities. Taxes may be an aggravating part of daily operations, but their accuracy is crucial in your path towards business success.

register:WEBCAST


Emerson Micro Motion Videos

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected